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ACT Government's $30 Million HR System Upgrade Faces Scrutiny Amid Staff Turnover

WHAT'S THE STORY?

What's Happening?

The ACT government is under scrutiny as it continues with a $30.7 million upgrade to its human resources system, despite high staff turnover within the project team. The Payroll Capability and Human Resource Management (PC-HRM) program aims to modernize existing systems after a failed attempt to replace them with SAP SuccessFactors. The project has seen significant personnel changes, with 35 new hires and 21 departures over two years. Concerns have been raised about cultural risks and leadership conduct, prompting questions from opposition members in the Legislative Assembly.
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Why It's Important?

The high turnover and scrutiny of the PC-HRM program highlight challenges in managing large-scale government IT projects. Successful implementation is crucial for improving payroll and HR processes across the ACT public service, potentially affecting thousands of employees. The project's progress and management could influence public trust in government initiatives and impact future funding and policy decisions. Stakeholders, including public servants and contractors, may face uncertainty due to ongoing personnel changes and project adjustments.

What's Next?

The ACT government plans to complete the HR system upgrade by June 2026, with further procurement for a rostering and attendance solution by June 2027. Reviews and investigations into staff concerns are ongoing, with the government committed to addressing issues through established policies. The project's complexity and 'amber' status indicate potential challenges ahead, requiring careful management to ensure successful delivery.

Beyond the Headlines

The scrutiny of the PC-HRM program underscores broader issues in government project management, including accountability, transparency, and workforce stability. Lessons learned from this initiative may inform future government IT projects, emphasizing the need for clear governance and effective leadership.

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